Introduction
Under the new system in Karnataka, rental properties will have to pay double the tax paid by self-occupied residential properties. However, the tariff for various categories of commercial buildings has increased by three to five times. Let’s find out why!
Tables of Contents
- Guidance Value
- Guidance Value in Bangalore
- Significance of Kaveri Guideline Value
- Kaveri Guidance Value-Based Property Tax in Bangalore
- Factors Affecting Guideline Values
- Why Is Guiding Values Important in Bangalore?
- Registration Offices in Bengaluru, Zone-Wise
Guidance Value
A guideline value is a minimum value prescribed by a particular region and fixed by the state government. Guideline value in Bangalore is known by other names, like circle rate or ready reckoner rate, in other parts of the country.
Guidance Value in Bangalore
The Kaveri Guidance Value is the minimum amount fixed in Karnataka below which a property cannot be sold in a particular location. A commonly searched term online, Kaveri guideline value is often used interchangeably with Bangalore guideline value.
A guide value is like the fixed price of a property. It cannot go below this value. Any increase or decrease in Kaveri Online guideline value will have a direct impact on the asset price. The Stamps and Registration Department in Bangalore revised the guidance value from time to time.
Much study has been done to keep Bangalore prices as close as possible to the market value of assets to avoid any instances of black money and cash transactions. Income is the same in other parts of Karnataka.
Before investing in property in the state, one should check the latest Cauvery Guideline Value. When registering a property transaction at the Sub-Registrar’s office, the Cauvery guideline value helps in determining the stamp duty and registration charges you pay.
Significance of Kaveri Guideline Value
- Property tax is assessed on the basis of stamp duty. Hence, indirectly, Cauvery relies on guideline values.
- Based on the Cauvery Guidance Value, stamp duty and registration fees of the property are assessed.
- With the help of Kaveri Online Guidance Value, it ensures that money is generated reasonably and the property is not undervalued.
Kaveri Guidance Value-Based Property Tax in Bangalore
Brihat Bangalore Mahanagara Palike (BBMP) has proposed to collect property tax based on Bangalore Guidance Value from April 1, 2024, to February 20, 2024, as per the draft notification.
Earlier, property tax in BBMP was calculated based on five zonal divisions (A to E). This system has been abolished under Section 144 of the BBMP Act, 2020. With this change, Bengaluru joins other cities in Karnataka with property taxes. Based on guideline value as per the Karnataka Municipal Corporation (Amendment) Act, 2021. BBMP has sought public objections regarding this initiative.
| Type of Property | Tax Rate |
| Residential property | 0.2% of guidance value Bangalore for properties on rent |
| Residential property | 0.1% of guidance value Bangalore for self-occupied properties |
| Fully vacant land | 0.025% of guidance value |
| Commercial property | 0.5% of guidance value |
Factors Affecting Guideline Values
- Location: The location of the property affects the guideline value. Enjoys good connectivity and has a sound infrastructure. Desired locations have a high guiding value.
- Type of property and its use: The guideline value depends on the type of property. It affects residential, commercial, agricultural, industrial, and guiding values.
- Infrastructure Development: Good connectivity and established infrastructure play a role in the value of location guidance. Proximity to both landmarks and connectivity to other parts of the city through easy public transport influence the guiding value.
- Amenities: A project with better amenities will affect the guide value of the overall location.
Why Are Guiding Values Important in Bangalore?
Even if you buy a property at a lower value, you will have to pay stamp duty on the guideline value. Not only that, as per Section 56(2)(vii)(b) of the Income-tax Act, 1961, if the value of stamp duty is greater than the purchase consideration, the difference between the value of stamp duty and the purchase consideration shall be treated as a difference.
If the property is sold for more than the BBMP guideline value, registration will be done as per the higher value. A well-developed and established area may have a high guiding value. Note that the guideline value is just a benchmark. A home buyer cannot convince a property seller to sell the property at the guideline value.
The property can be sold at any price between the guideline value and the market value. Whichever is more is without any additional tax implications. If you see a property selling for less than the guidance value, check its documentation and details. The developer may have done so to save tax.
Registration Offices in Bengaluru, Zone-Wise
Let’s know the details of registration offices in Bangalore zone-wise.
| Bengaluru east | Bengaluru west | Bengaluru north | Bengaluru south |
| Indiranagar, BDA Complex, Bangalore 560050. Telephone: 25634517 | No. 488 B-Block, Karnataka Industrial Area Development Board Building, 14th Cross, Peenya 2nd Stage, Bangalore 560058. Telephone: 28366091 | Sree Rundhreswara Chambers, New Town, Bangalore 560064. Telephone: 22959367 | SLN Complex, RTS Bus Stand, Mysore Road, Bangalore 560060. Telephone: 28484159 |
| Domlur, BDA Complex, Bangalore 560038., Telephone Number: 25352907 | Sri Rameshwara Temple Commercial Complex, Near Sahithya Parishat, Chamarajpet. Bangalore 560018. Telephone Number: 26606641 | K.R. Pram, near Santhemaala, Bangalore 560036. Telephone Number: 22959345 | 4th Block, Jayanagar, 12th Main Road, Bangalore 560041. Telephone Number: 22959347 |
| National Highway, Manjushree Chambers, K R Puram. Bangalore 560036, Telephone Number: 28472677 | 19/B, 2nd floor, V.K. Iyengar Road, Gandhinagar, Bangalore 560009. Telephone Number: 22959353 | No. 69, Cholanayakanahalli, R.T. Nagar Post, Bangalore 560032. Telephone Number: 22959322 | Taluk office premises, Mini Vidhana Soudha, Anekal, Bangalore 562106. Telephone Number: 27841096 |
| No. 4, Jatar Circle Road, Whitefield, Bangalore 560066, Telephone Number: 22959342 | 5th Block, No 1034., Near Dhobi Ghat, Rajajinagar. Bangalore 560010. Telephone Number: 22959350 | No.25, D.M.Chambers, 3rd stage, Jawaharlal Nehru Road, RajaRajeshwari Nagar, Bangalore 560098. Telephone Number: 22959329 | No.1, Madanayakanahalli, Dasanapura Hobli, Bangalore. Telephone Number: 22959325 |
Conclusion
People who want to invest in property in Bangalore should know the latest guideline value in advance. It also affects the stamp duty and property tax they have to pay. The value is the same for all categories of buyers. For more information, visit Openplot.
Also read: Godrej Properties to Build a Township in Bengaluru